Utilizing DOW theory to spot the trend and find out the best possible entry with candle stick patterns and chart patterns. And using projections with Fib levels for targets.
Looking at the 4hr timeframe , instrument is in bullish trend (series of HH,HL). It retraced to 0.618 fib level after making previous HH and there is a bullish flag pattern forming suggesting continuation of the trend. Using bullish flag pattern target (9.25) and fib levels projections (1.382 at 9.12) we can expect to hit the target which is also in next major resistance zone . If we break out of this channel it would be the confirmation for bullish flag pattern and a possible long position is there with target towards 1.382 fib level and stop loss a little below previous HL (5.89).
Risk 2%
Reward/Risk : 2
Buy zone : above 7.2 upon breaking out of channel
STOP Loss :5.89
TP1: 8.5
Tp2 : 9.25
Looking at the 4hr timeframe , instrument is in bullish trend (series of HH,HL). It retraced to 0.618 fib level after making previous HH and there is a bullish flag pattern forming suggesting continuation of the trend. Using bullish flag pattern target (9.25) and fib levels projections (1.382 at 9.12) we can expect to hit the target which is also in next major resistance zone . If we break out of this channel it would be the confirmation for bullish flag pattern and a possible long position is there with target towards 1.382 fib level and stop loss a little below previous HL (5.89).
Risk 2%
Reward/Risk : 2
Buy zone : above 7.2 upon breaking out of channel
STOP Loss :5.89
TP1: 8.5
Tp2 : 9.25